World Food Day
World Food Day
Your esteemed newspaper on Oct. 17 published an opinion by
Prof. Didin S. Damanhuri on the problems faced by rice farmers,
especially the declining price of rice in the market. This
opinion and the others in the paper were thought-provoking. The
publication of these opinions was welcome on the occasion of
World Food Day. I would like to give the following suggestions
toward a solution to the present problems:
1. A commission consisting of experts from concerned
disciplines should be appointed to examine and suggest the
minimum support price for rice every year, taking into account
the cost of rice cultivation, such as seed, irrigation, labor,
fertilizers, pesticides, interest on loans, etc.
The price should be remunerative to farmers and it should be
announced before the crop is harvested. It should be remembered
that farmers are responsive to a positive price policy. If the
price is remunerative, farmers will invest more money in rice
cultivation.
More rice means not only self-sufficiency, but also will
enable the government to export rice and earn foreign exchange.
2. The State Logistics Agency (Bulog) should step in and
purchase rice stocks if the market prices fall below the support
price. That means farmers would be guaranteed that their rice
stocks would be purchased at the announced support price by
Bulog.
3. Bulog should get funds from the government for all its
operations, such as the purchase of rice for the maintenance of
buffer stocks, storage, transportation and distribution, in
addition to administration costs. It will work on a no-loss and
no-profit basis.
4. Bulog should work under the direction of the food
department in the government; it will only implement the policies
of the government as a corporation.
5. If the government wants to sell rice at a subsidized price
to any section of society (say people below the poverty line),
the subsidy should be borne by the government; Bulog will only
implement the scheme.
6. The import of rice should be controlled by the government
and it should not result in falling market prices. The
maintenance of market prices to satisfy farmers and consumers is
necessary.
Dr. K. KRISHNAMURTHY
Jakarta